Retraction: Confidence level and credit risk analysis in Russian banks

Abstract

The aim of the paper is to analyze the confidence level and credit risks in Russian banks after the 2014 sanction in terms of the economic behavior theory. The paper describes the banking system of Russia using analytical methods according to the polled data of the Financial University and the Bank of Russia. The survey included 106 responses of professors and researchers of the Financial University ranged by level of influence: 7 – very high; 6 – high; 5 – little higher, 4 – middle, 3 – little low, 2 – low, and 1 – very low. Statistics on Distance to Default and Probability of Default are used from Thomson Reuters. The survey proves that the problem of credit risk management in the Russian banking system is not so strong. It is confirmed that the confidence level is the solution to the problem of low level of institutional investors’ (mutual funds, pension institutions, insurance companies) capacity due to the lack of money coming into the financial system. The main conclusion is that in Russia there are no proper incentives for potential recipients of investment to attract investment resources in the domestic stock market, and the number of banks is steady decreasing. The results showed that the credit risk of Russian banks is higher than one year ago.